Dissolving a Business: When to Involve an Attorney

No business lasts forever, and some are even intentionally closed by its
owners. Sometimes the effort put into running it is not worth the return,
or retirement just sounds nice and no one else can be trusted with the
task of managing the business. Regardless of the reasons, voluntarily
shutting down a company, business, or corporation in California involves
a process known as
dissolution, and often requires the assistance of a
business law attorney due to its many steps and complications.

How a Business Law Attorney Can Help with Dissolution

For many business owners, dissolution can be more problematic and complex
than the formation of that same business. Taking apart a company cannot
be rushed and will be instructed by a new or separate set of laws and
regulations. Even spending decades of your life running a business does
not guarantee that you will ever learn about how to dissolve it. This
is why so many entrepreneurs and executives turn to a business lawyer
to guide them through dissolution from start to finish.

When dissolving your business, allow your business lawyer to help you with:

Starting point: As if matters were not already complex enough, business dissolution can
be accomplished by more than one process, and several processes have to
be used for specific business types and situations. For example, corporations
with no public stock or an active Chapter 7 bankruptcy filing have highly-specific
dissolution procedures. The same can be said of a company that has liquidated
all assets and has not conducted any sort of business in five years. Getting
a business law attorney allows them to start by identifying your business
type and where to begin to dissolve it.

Voting among shareholders: If your business does have shareholders controlling its primary decisions,
then it is likely that you will need to take a shareholders’ vote
before you can dissolve it. Corporate law in California requires at least
50% of all shareholders to vote on dissolution. Your business lawyer can
help you prepare for the vote and know ahead of time what to do if someone objects.

Winding up: When dissolution is approved, the winding up process begins. While “winding
up” your business, you have to take appropriate steps to prepare
it for its final days. The priority will be eliminating outstanding debts
and liabilities by appropriately allocated or holding onto remaining finances.

Filing certificates: You may be required to file a certificate of dissolution with the Secretary
of State, depending on the size of your business. Within the certification,
you have to provide clear explanations of why your company has been dissolved
and evidence of previous steps’ completion. Letting your business
attorney draft, review, and file your certificate eliminates any guesswork
that could have otherwise led to complications.

Call Our Rancho Cucamonga Business Dissolution Lawyers

At Chung & Ignacio, LLP, we make business law complications a thing
of the past for our clients. By providing straightforward legal advice
and honest counsel, we can help you navigate through the dissolution of
your business without worry. In case matters do run into a snag and a
third party violates corporate law or conducts a
contract breach, you can depend on us to represent and uphold your best interests through
civil litigation.

Learn more about our services and how you can begin business dissolution by
contacting our Rancho Cucamonga business law attorneys today.

The information on this website is for general information purposes only.
Nothing on this site should be taken as legal advice for any individual
case or situation. This information is not intended to create, and receipt
or viewing does not constitute, an attorney-client relationship.

x

⚠

Your browser is out of date. To get the full experience of this website,
please update to most recent version.